Heineken NV emerges largest shareholder in United Breweries; report
11 Dec 2013
Heineken NV of the Netherlands has emerged as the largest shareholder of United Breweries (Holdings) Ltd after its stake inched past the stake of liquor baron Vijay Mallya, Reuters reported today.
Heineken, the world's third-largest brewer, now holds a 38.7-per cent stake after it bought 1.3 per cent yesterday from Citicorp Finance India. Mallya owns a 37.4 per cent stake in the company.
United Breweries, maker of Kingfisher, India's biggest-selling beer, also makes London Pilsner and Kalyani Black Label.
Reuters quoted a person with direct knowledge of the matter, who declined to be identified as saying, Heineken's new shares had been pledged as collateral for a loan it extended to parent UB Group, which was under Mallya's control.
Mallya, who is also the owner of grounded carrier, Kingfisher Airlines Ltd, owed lenders of the airlines about Rs6,000 crore as of September. In a deal last year, he sold off majority of United Spirits Ltd (USPL) to British drinks maker Diageo PLC for $2.1 billion.
United Breweries started manufacture and distribution of Heineken beer in India in 2009 after entering into a joint venture in 2004, with Scottish and Newcastle India Pvt Ltd, now owned by Heineken, to make and market a number of beverages.
Heineken yesterday bought 3.5 million United Breweries shares in a transaction worth Rs2.8 billion rupees pricing the shares at Rs772.9 a piece as per exchange data.
The company's shares jumped as much as 4.8 per cent to Rs813 after closing 0.4 per cent higher on Tuesday.
